Blog Entry 6

The old get richer, and the young get poorer

This is stated in a research, done by the Institute for Fiscal Studies (IFS), released this week. They have found that more than 40 per cent of all the pensioners are in the top half of the income distribution bracket, compared with 25 per cent 20 years ago. A separate study (also released this week) shows that the young (under 30) have lost out compared with the older generation, since the financial crisis of 2008. With the upcoming cuts and tax rises, a pensioners’ income will reduce with only 1.8 per cent per year, compared with 4.7 per cent for households with children. Also, pensioners are eligible for a series of non-means-tested benefits, such as free transport etc. This research has led the government to question the case. Mr. Cameron explicitly ruled out any change of policy, for he was elected on a mandate for improving pensions. Also, Michelle Mitchell, charity director of Age UK, said: "We must remember that the number of pensioners in poverty remains at 1.8 million."

I see that Britain is struggling with this subject as well. I know that this is a major subject in Holland. What I find strange, is that they keep cutting in the budget for young people. I know students don’t get a fair deal compared with the older people in England. So, reading this article, I found it quite strange to read that more than 40 per cent of all the pensioners are in the top half of the income distribution bracket (inkomensverdeling stelsel). That is quite a lot compared with the younger people, as stated in the full article. I believe that older people must get a good deal, so they can live without problems in the last stage of their life, for they have done a lot for society. But it is unfair to subordinate the younger people, for they are the bearers of today’s society. The money for the older generation comes mainly from the younger people. It’s ok to treat the older generation, but make sure it is balanced out. Don’t rule out the outcomes because of one’s election.

http://www.independent.co.uk/news/uk/home-news/the-old-get-richer-and-the-young-get-poorer-7881201.html